Here are the steps on how to recover a judgment on bad debt:
- Check the statute of limitations. The statute of limitations is the time limit within which a creditor can file a lawsuit to collect a debt. In Kentucky, the statute of limitations for debt is 5 years for oral contracts and 15 years for written contracts. If the debt is older than the statute of limitations, the creditor may not be able to file a lawsuit to collect it.
- File a lawsuit. If the debt is not past the statute of limitations, the creditor can file a lawsuit to collect it. The lawsuit will be filed in the county where the debtor lives or where the debt was incurred. The creditor will need to provide evidence of the debt, such as a copy of the contract or invoice.
- Serve the debtor with the lawsuit. Once the lawsuit is filed, the creditor will need to serve the debtor with a copy of the lawsuit. This can be done by personal service, which means delivering the lawsuit to the debtor in person, or by certified mail.
- Go to court. If the debtor does not respond to the lawsuit, the creditor can ask the court to enter a default judgment. A default judgment is a judgment in favor of the creditor without the debtor having to appear in court. If the debtor does respond to the lawsuit, the case will go to trial.
- Enforce the judgment. Once the creditor has a judgment, they can take steps to enforce it. This may include garnishing the debtor’s wages, levying the debtor’s bank account, or seizing the debtor’s property.
At New World Collections we are experts in all assets of bad debt recovery. We have the answers! Contact Us